Harris

SUMMARY

The notice provisions of the Unclaimed Property Law do not require the Controller to provide notice to apparent owners of escheated stock before the Controller sells the stock. Sale of escheated stock without notice to the owners does not violate the due process provisions of the federal or state Constitutions.

FACTUAL, PROCEDURAL AND LEGAL BACKGROUND

Gene Harris, Peggy Lee Dominguez, Annette Schoon, Russ Garcia and Julianne Jackson (collectively, Harris) worked for GTE Corporation during the 1970’s and 1980’s. In June 2000, GTE merged with Bell Atlantic to create Verizon. During the period March 2000 to September 2001, Harris and the others learned they owned stock in GTE that had been transferred to the State of California and sold without their knowledge. They retained counsel, and an investigation revealed that GTE had issued duplicate shareholder certificates and delivered them to the California Controller. The Controller’s records show the stock escheated to the State of California on November 1, 1990. The Controller sold the stock, without notice to Harris, and deposited the funds from the sale in the Unclaimed Property Fund. The Controller’s records…